You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 170 hours in your first month and 340 hours in your second month of business. You charge your customers $17 per hour. You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the amount of cash collections in your second month of business.

You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 170 hours in your first month and 340 hours in your second month of business. You charge your customers $17 per hour. You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the amount of cash collections in your second month of business.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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